Defence stock jumps after MoU to expand AI, automotive and data centre footprint

SYNOPSIS: A strategic MoU has been signed by the company and VVDN Technologies to jointly develop next-generation solutions across automotive, defence, AI and data centres, leveraging combined engineering and manufacturing strengths to tap emerging technology opportunities.

During Thursday’s trading session, shares of a leading manufacturing and engineering company surged nearly 2 percent to hit a fresh 52-week high at Rs. 1,801 on BSE, after signing a Memorandum of Understanding (MoU) to explore a strategic collaboration across AI, defence & data centre collaboration.

With a market cap of Rs. 84,958.7 crores, shares of Bharat Forge Limited were trading in the green at Rs. 1,777 on BSE,  compared to its previous closing price of Rs. 1,771.85. The stock has delivered positive returns of over 65 percent in the last one year, and has gained by nearly 26 percent in one month.

What’s the News

As per the latest disclosures with the stock exchanges, Bharat Forge Limited and VVDN Technologies, a global provider of product engineering and manufacturing services, have signed an MoU to jointly pursue opportunities in next-generation technologies across the Automotive, Defence, AI, and Data Centre segments.

The partnership is set up to drive innovation and co-develop advanced technology-driven solutions by leveraging the complementary strengths of both companies in engineering, manufacturing, and technology innovation.

Against the backdrop of a rapidly transforming AI landscape, this collaboration positions both parties to contribute meaningfully to the global AI ecosystem and harness its transformative potential for future-ready solutions. 

By combining VVDN’s strengths in electronics design, software, system integration, and manufacturing with Bharat Forge’s expertise in advanced manufacturing and precision engineering, the two companies aim to explore the development of scalable, high-impact solutions aligned with evolving industry requirements and emerging technologies.

Founded in 2007 and headquartered in Gurugram, VVDN Technologies is a global product engineering and electronics manufacturing company. As an Original Design Manufacturer (ODM), it delivers end-to-end solutions across 5G, networking, automotive, IoT, vision-based AI/ML, and cloud domains.

Financials & More

Bharat Forge reported a significant growth in consolidated revenue from operations of around 25 percent, from Rs. 3,476 crores in Q3 FY25 to Rs. 4,343 crores in Q3 FY26. Likewise, its net profit increased during the same period from Rs. 213 crores to Rs. 273 crores, representing a rise of more than 28 percent YoY.

The company’s Q3 financial performance was aided by the strong growth in the domestic automotive business and execution of the defence orderbook. However, the export revenues witnessed a 3 percent sequential decline, with the auto sector down 13 percent and industrials showing a 11 percent increase. 

During the quarter, Bharat Forge secured new orders of nearly Rs. 2,388 crores, including Defence orders worth around Rs. 1,878 crores. As of December 2025, the defence order book stood at Rs. 11,130 crores.

Bharat Forge Limited, a part of the Kalyani Group with an annual turnover of more than $3 Billion, is engaged in the business of manufacturing and selling forged and machined components, including aluminium castings for the auto and industrial sectors, as well as assembled products for the defence industry.

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